The Office of National Statistics (ONS) revealed that monthly construction output is estimated to have fallen by 0.2% in volume terms in January 2025, following a decrease of 0.2% in December 2024.

The decrease in monthly output came solely from a fall in new work (0.7%) as repair and maintenance grew by 0.4%. Anecdotal evidence from survey returns noted adverse weather, including heavy rain, snow and storms as having a negative effect on output.

At the sector level, three out of the nine sectors fell in January 2025; the main contributors to the monthly decrease were private commercial new work, and private housing new work, which fell by 6.1% and 1.8%, respectively.

Construction output is estimated to have increased by 0.4% in the three months to January 2025; this came solely from an increase in new work (1.4%), as repair and maintenance fell by 0.9%. The increase in construction output in the three months to January 2025 came solely from November 2024 (0.6%).

Brian Berry, chief executive of the FMB, said: “Winter is always a challenging period for the construction sector, but it remains concerning to see another 0.2% decline, following the 0.2% decline previously recorded for December. With the wider UK economy also contracting in the first month of 2025, it is a worrying time for all the building trades. Builders will be looking forward to some spring sunshine to ensure they can get cracking on with jobs, and the hope that consumers will be more willing to commit to projects.

“Despite the overall slowdown, the 0.4% growth in the repair and maintenance work is an encouraging signal demonstrating the crucial role that small builders play in boosting the UK economy. Local builders make up the vast majority of the building industry and they need a stable economic climate to grow. Hopefully, the forthcoming Spring Statement from the Chancellor will help kickstart the economy and get more consumers to spend.”

Clive Docwra, managing director of property and construction consultancy McBains, said: “January’s 0.2% dip in output, following an equivalent fall in December, serves as a warning that confidence among some developers remains fragile. In particular, the industry will be concerned to see private commercial new work falling by more than 6% and private housing new work by 1.8%.
 
“The worry is that any longer term stagnation in the wider economy risks having an impact in terms of investor uncertainty, which may lead to further projects being put on hold.  The government’s Planning and Infrastructure Bill, published earlier this week, contains welcome measures to speed up the planning system, and the industry will hope this injects more confidence among developers and investors in the months ahead.”

Scott Motley, head of programme, project and cost management at AECOM, added: “A negative reading tallies with other industry barometers and confirms the notable slowdown seen since the start of the year.

“With the UK’s much-needed infrastructure upgrades at the heart of the government’s growth strategy, the latest raft of announcements from Whitehall brings reason for optimism for contractors concerned by challenging economic conditions. Indeed, the much-trailed Planning & Infrastructure Bill is the most significant shift towards a properly supported, long-term infrastructure strategy in a generation.

“The Bill should ultimately facilitate greater private sector investment – the need for which is likely to come into even sharper focus as the Chancellor potentially eyes up more cuts to local authority funding ahead of the Spring Statement.”